Daily Investment Interpretations

April 8, 2009

2009-4-8:  After yoyo-ing up and down, the markets closed modestly higher today. The NASDAQ added 29.05 points (1.86%) to close at 1,591, the Dow advanced 186.29 0.61%) to 7,837, and the S&P 500 gained 9.61 points (1.18%) to close at 825. Oil inched up to $49.38, and gold gained $2.60 to $885.90. The VIX fell below 40 to 38.85.
    The big news tonight isn't about the U. S. Markets but about the Chinese economy and the Chinese stock market... not that I'm aware of any breaking news about China, but about the fact that a general perception that the Chinese market has taken off is permeating the various advisory services to which I subscribe. Unfortunately, my Norton Antivirus program chose tonight to terminate without warning, In the process, it shut down my computer without giving me a chance to save the material that I had typed here, so I'll have to try to expand on this in the morning. I'll only mention that the Cabot China and Emerging Markets Newsletter has already flashed a buy signal for three Chinese stocks,  of which is Shanda Interactive Entertainment (SNDA), which closed today, at $45, up 50% from its price of $30 when it was recommended a month or so ago. Another is the Aluminum Company of China (ACH) which closed today at $17.53 a share, up about 10% from its recommended price of $16 a share, and up 17% from the price at which I bought it. However, the best choice may be the iShares TR FTSE (China) ETF (Exchange-Traded Fund), symbol: FXI, for reasons that I'll discuss tomorrow.
    Sorry! Got to split! I'll add to this tomorrow.